Stockholders' equity and total assets were $192,000 and $474,000 respectively at the beginning of the period. Assets increased 50% and liabilities decreased 60% during the period.

Question

Quizplus · Accepted Answer

Liabilities = Assets - Stockholders equity
($474,000 - $192,000 = $282,000)
Stockholders' equity = Assets - Liabilities
X = [($474,000 x 150%) - ($282,000 - ($282,000 x 60%))]
X = $598,200

Stockholders' Equity and Total Assets Were $192,000 and $474,000 Respectively